Textiles industry can be developed only through MSME's
Textiles and micro, small and medium enterprises (MSMEs) are closely linked, with the backbone of the textiles industry being made up by the countless MSMEs scattered across the country. For the textiles industry to remain healthy, it is imperative that textile MSME units are not only stable, but are able to scale up operations and become more efficient as well. Capacity-building and empowerment are key elements here, and the two ministries of textiles and MSME need to work in tandem. Union minister for MSME, Kalraj Mishra, speaks to Richa Bansal about textiles and MSMEs, and how plans are being rolled out on the ground.
There was a tripartite MoU signed between the ministries of textiles and MSMEs along with National Textile Corporation (NTC) to build a technology centre in Kanpur. What is the progress this far?
Kalraj Mishra (KM): We had an agreement with NTC regarding buying land, because a lot of land is available for textiles in Kanpur-which is lying unproductive. Kanpur used to be called the Manchester of India, but now the condition is bad. So we thought if we could get some support from the Technological Centre System Programme and set up a technology centre or tools room, then it would be extremely beneficial from the industry point of view; and the industry can have access to skilled manpower for high-technology and normal technology. This will benefit nearby industries too. I am grateful to the NTC, for providing approximately 8.6 hectare land for the same. We did a puja recently. We would start building the technology centre there. The land has been made available to us on lease and at a very low cost.
MSME and textile industries are closely related...
KM: The textiles industry must be like developed-MSME. Many textile units employ small numbers of manpower. The textiles sector and MSME go hand-in-hand. The textiles sector is huge and MSMEs are instrumental in developing this sector. Hence, without MSME we cannot think about textiles.
Are there any targets set for 2020 for this purpose?
KM: In comparison to 2013-14 and 2014-15, the production of khadi has increased 1.5 times and so has the marketing for khadi. We aim to promote khadi, and increase the production of the fabric too. We seek to take orders from all the ministries for khadi. We have received orders from the railway and defence ministries, to name a few, so that we can continue to promote khadi.
What are the plans that NTC has laid out?
KM: NTC works as a corporation.
The Skill India initiative seeks to train 15 lakh youth by 2017. How much are we on target because 2017 is soon approaching?
KM: We do not want to get into the numbers game. As units start developing, we seek to provide hands-on training and different modules based on industry demands. We will design the curriculum based on that. We plan to empower entrepreneurship and skilled manpower through training. We have also launched a web portal supporting the Digital India initiative at MSME For Digital Employment Exchange, for industries only. Employers and employees can register themselves on the portal. This will help employers find out where is skilled manpower available for a particular industry and help an employee look for jobs based on the skill. Both parties then can mutually negotiate. Earlier, there were about 3-4 lakh registrations. I am not completely aware of the number right now. Many industries have also registered. A lot of verification and monitoring is required to get the actual statistics.
Our aim is to set targets to train through small technology centres. From one technology centre, we will train from 5000-10,000 individuals every year. The individuals will comprise entrepreneurs and job seekers. Based on the data from all our existing technology centres, around 3 lakh people get trained each year. According to statistics, 13 crore people so far have been trained.
We have launched an MSME data bank. There's a page on the web portal where you need to answer questions in a yes-or-no format. There are questions related to schemes. Once the data is fed and registered, it will be made online. This way there will be information on micro, small and medium scale industries.
What kind of activities will be held at the centre?
KM: Hosiery, auto (mobile), engineering-related industries are there in the area. Hence, focus will be on these industries and latest technologies and machines will be made available. Along with that, there are courses like B. Tech and M. Tech, B.Sc and MBA for skill development. The duration of the courses will vary-6 months, 1 year and 2 year courses. There will be an institute along with hostel facilities. There will be a special area designated to machines for receiving hands-on training. The centre will provide technological upgradation and provide information on the latest technologies. There will be common facility centres too. Kanpur is an industrial hub for leather, agriculture, automotive and textiles. The latest technology in all these fields will be made available there. There will also be a research and development centre. New innovations in the field will also be available there.
The leather industry in Kanpur is languishing. What is being done in this regard?
KM: The leather and hosiery industries are not doing well. We have taken initiatives to upgrade and revamp these industries. One of those is to provide technical assistance and at the same time equip the industries with technologies to make them environment-friendly. The PM has stressed on skill development through Skill India and along with that 'zero defect and zero effect' attitude for quality-safe technology. We also aim to work towards (new) industries where there is no pollution. 'Zero liquid discharge' is one such technology. We also plan to work towards recycling polluted water.
You asked about the leather industry; we have decided to provide training for the leather industry too. In Agra, we plan to set up a tools room. We have opened institutes related to leather in Agra. We plan to provide similar training available in Kanpur as well.
When the Amended TUFS was announced, many MSMEs were unhappy with the announcement. They felt that this would benefit only the big players. Has this issue been taken up with you?
KM: Technological upgradation is required everywhere. Technological upgradation is applicable to large, small and micro industries. Technological upgradation is important along with technological quality upgradation.
For the development plans announced for MSMEs for 2016-17, ?3000 crore were allocated to the ministry.
KM: We have distributed the budget of Rs3000 crore for khadi, PMEGP, MSME, for various schemes and MSME minister Kalraj Mishra after inaugurating the Khadi sales outlet, at Parliament House, in New Delhi (August, 2016). Minister of state for MSME Giriraj Singh and other dignitaries are also seen.have set targets. Earlier, a very low amount used to be spent, but now we utilise the complete budget by December. We will ask for more in the future.
Please tell us about the MSME policy you talked about.
KM: A lot of people have asked for and made suggestions towards the MSME policy. We have a one man committee for the same. Our cabinet secretary earlier, Prabhat Kumar, is developing the policy, which will be launched by October.
You mentioned that there is a very good coordination between the textiles and MSME ministries. What is the role that both the ministries will play together in the years to come? How would you like to take things to the next level?
KM: The textiles industry and MSME are closely connected. The textiles industry can be developed only through MSMEs. This is all because of the coordination. Without any coordination, how can an MoU be signed and how can we open a technology centre in Kanpur. Within textiles, there are looms that weave fabrics. We have Khadi and Village Industries Commission (KVIC), Khadi & Village Industries Board (KVIB) and khadi. We have now also begun the use of solar energy. Things are developing. We also seek to support artisans. Artisans now use solar energy for the charkhas to earn more and for increasing productivity. We introduced solar energy very recently.
What activities are you planning for the textiles industry?
KM: We plan to impart training in the field of textile engineering. Textile engineers today follow the same education process that was prevalent years ago. But we aim to provide training using latest technology. Technological developments are taking place at a fast pace nowadays. Advanced and latest technologies being used in the textiles industry will be brought to the centres for training purposes so as to improve the state of affairs in the textiles sector.
Textile industries in the West are replacing manpower with robotics, which is the latest technology being used. Have we in India moved in the direction of implementing robotics? On one end we are training youth and on another we plan to bring robotics into the textile sector, will this lead to redundancy?
KM: Robotics and skilled manpower can be thought of in two ways. The competition in the global market exists in terms of manufacturing. We have a National Manufacturing Competitiveness Programme. Design clinic technology is one of the many components of the programme. It focuses on developing the technology based on the design so that we can compete and deliver better in the global market. The other one is lean competitiveness technology. If lean technology is implemented effectively, then the quality can be maintained, and it can lower costs too. Lean technology requires proper planning and allocation of resources. In recent times, when everything is automated, lean technology is important. This is the technology where robots are being used.
Where skilled manpower is unavailable, robots are being used. Skilled manpower and robots have different requirements. A confrontation between the two is not possible. Keeping all this in mind, the main aim of our technological centre is to provide the latest technology in the fields of textiles, hosiery, leather for training skilled manpower along with common facilities, besides empowering innovations based on research and development.
Any thoughts on the National Textile Policy to be introduced soon?
KM: The details of this will be made available soon.
How is the MyMSME portal doing?
KM: Along with the portal we also have an app. Please take a look and tell us what is right and what isn't.
Are you happy with the progress of the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?
KM: Yes, yes, I am happy. Initially nothing was being accepted under it. For the first time ever, more than 71 SFURTI clusters have been recommended and not only that, schemes have been implemented as well. There are three clusters - one is heritage, under which there are 1000-1500 artisans. Second is a major cluster, which also consists of 500-1000 artisans, and third is a mini cluster, which has about 500 artisans. The budget for each cluster has been decided-?8 crore for heritage cluster, ?3.5 crore for major, and ?1.5 crore for mini cluster. Through this we aim to bring about technological and innovation changes as well as develop infrastructure for the benefit of artisans. There used to be very few meetings for this purpose earlier, but now we have started meeting every other month. Earlier, this used to be need-based, the state government and our people used to go in search of places that have such demand. There are a lot of traditional industries.
Most export companies may be big, but the backbone is provided by countless MSMEs. For exports to pick up, these MSMEs need support and hand-holding. How are you planning to meet this particular challenge? It is not just a question of financial support, but helping them improve on quality and efficiency.
KM: To upgrade quality, we have different kinds of schemes. MSMEs contribute over 45 per cent to manufacturing and 42-44 per cent to exports. Contribution of MSMEs to the GDP, both service and manufacturing sectors combined is 37.5 per cent, out of which 30 per cent comes from the service sector and 7.5 per cent from manufacturing. More than 6,000 products are manufactured by MSMEs in India. About 10 crore people get employed by MSMEs. MSMEs are also trying to provide facilities like incentives to their employees.
Please share some details about the KVIC.
KM: Clothes made at KVIC and other khadi clothing for a very long time had been operating on a noprofit- no-loss business model. It was something which was worn by political leaders or the elderly. But now times have changed. Khadi is now a choice of fabric for a lot of designers. They are getting better with time. Young boys and girls are now attracted towards new trends in khadi. We have made t-shirts, suits and khadi denim to promote this handloom fabric. Reputed fashion designer Ritu Beri has also contributed. We are trying to attract the youth towards khadi and expand markets globally too. The products being developed through village industries and gram udyog have a good demand in the domestic market. The production for such items is growing along with the increasing demand, and the market is also expanding.
The MSME ministry has a Mahila Coir Board. Do you plan to introduce any new schemes for women?
KM: For women and the coir industry, we have the Mahila Coir Yojana. In villages of Kerala, Karnataka, Tamil Nadu, Odisha, West Bengal, the coir industries are present. Women play a big role in coir industries. We have introduced cluster schemes also in this industry, under which more than 7 lakh women have been employed. There is also the Coir Udyami Yojana (CUY) under which we provide a subsidy of ?10 lakh. A lot of people have taken advantage of this. The entrepreneur pays only 5 per cent; the bank and we take care of the rest. We are also developing the clusters. We upgrade technology, empower women, and renovate the industries through the schemes. We also export the products made within the industry. This is extremely popular. We have introduced a Trade Related Entrepreneurship Assistance and Development (TREAD) scheme just for women entrepreneurs. NGOs run it. We provide loans of ?2.5 lakh. The other scheme is Prime Minister's Employment Generation Programme (PMEGP), for which we provide a subsidy to women towards the margin money. For general category, we give 15 per cent in subsidy. For women in cities we provide 25 per cent and in villages 35 per cent. The other scheme that the prime minister recently announced was the Stand Up India Scheme, under which there are 1,25,000 banks involved. These banks will adopt a SC candidate and a woman to provide loan. Some 2.5 lakh entrepreneurs will be supported in this way. For SC/ST, there is also SC/ ST manufacturing hub. Our ministry is working on it. A budget of ?500 crore has been allocated for the scheme.
As the ministry of MSME, what is the focus you want to bring on R&D?
KM: The prime minister has announced Start-Up India. The general outlook towards start-ups is that one who has an IT background or is educated can begin a start-up. But we do not think so. Any person who has innovative ideas and can do things differently can work on a start-up. Something new will benefit society. With this thought, we aim to support and provide a status of start-up to them. We provide loan, subsidy, without any government intervention.
We also have a scheme, ASPIRE - a scheme for promotion of innovation, rural industries and entrepreneurship. ASPIRE is implemented at small incubation centres, business incubation centres and technical business incubation centres. Some want to get technical innovations like using a modern machine worth ?4-5 lakh or ?10 lakh; one can also do research and development.
